Activision Blizzard is a buy, but wait with Take-Two Interactive
Jim Cramer of CNBC said on Tuesday that Activision Blizzard is in a better position in the short term than rival Take-Two Interactive.
Both video game companies reported earnings this week.
Stock Activision Blizzard rose about 5.6% on Tuesday after the company reported higher revenue in the latest quarter. Cramer said that while all eyes are on the FTC v. Microsoftattempt to acquire a video game publisher, he believes that Activision Blizzard does not need this acquisition to continue to do well.
“I think Activision Blizzard is on fire right now. I almost hope that the merger with Microsoft falls apart as soon as possible, so that you have more opportunities to buy,” he said.
Stock Take-Two interactive rose about 7.9% on Tuesday, bouncing back from falling on Monday due to a quarterly shortfall in earnings. Cramer noted that the company’s warning about a change in consumer behavior due to tough macroeconomic conditions is worrisome.
But he predicted that the company behind the Grand Theft Auto and Red Dead Redemption series would eventually produce another hit that would lead to a comeback.
“You have to believe in the turn to own this. It might be a little early after this big run,” he said.
Disclaimer: Cramer’s Charitable Trust owns shares in Microsoft.